6 Things that Can Lead to Expensive Car Insurance
Reader’s Question:
I’ve been told that there are a lot of things that can affect my car insurance rates, is this true? What are those things?
Prince
Forth Smith, AR
That’s right. There are definitely a few things out there that can cause your car insurance rates to skyrocket. Knowing about these factors is vital if you want to get cheapest car insurance policy. Here are six (6) factors you should know about:
1. Poor Driving Record – Your driving history is a crucial factor that your insurer looks at. By getting into more accidents, or just accumulating driving tickets, the amount of risk you represent to your insurer increases. The higher your risk the more expensive your rates become.
2. Unsatisfactory Credit – People with good credit scores tend to be more responsible drivers as well. Again, this means they have a lower risk of getting into a car accident, so they get cheaper rates. However, this works the other way around for those who let their credit slide.
3. Too Much Claims – Again, it’s all about the risk. Filing too much claims means you’re getting into more trouble while driving.
4. Insuring a Teen Driver – Teens are hardly the best drivers around, and that will reflect on your rates once you add a teen driver under your policy.
5. Relocating to a Big City - More cars, higher traffic density, and the higher crime rates in urban areas means there is a bigger chance of you filing a claim for car theft or accidents.
6. Allowing Your Coverage to Lapse – Allowing your coverage to lapse is a big no-no. Driving around uninsured raises a red-flag with your insurer and will make you a high-risk driver in their eyes.
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